What are “Bodily Injury Limits” in an Auto Insurance Policy?
Liability insurance is required for drivers in both Missouri and Illinois to cover the costs of an accident when the policyholder is at fault. Bodily injury limits protect insurance companies by setting a cap on the maximum amount they will pay victims for injuries in an accident. Sometimes, that amount is enough to cover medical bills, but many times—especially in catastrophic accidents—it’s not.
If you are the victim of an accident and the at-fault driver’s insurance doesn’t cover the cost of your injuries, lost wages, and pain and suffering, you have the right to seek legal help to get compensation.
What are the Required Minimum Bodily Injury Limits?
Bodily injury coverage pays for a victim’s current and future medical bills, plus lost wages and emotional damages. Under Missouri and Illinois auto insurance laws, all drivers must carry the following minimum amounts. Higher coverage amounts are optional and can be added to a policy.
- $25,000 per person
- $50,000 per accident (two or more victims)
In addition, drivers in both states must carry Uninsured Motorist (UM) insurance with minimum bodily injury limits of $25,000 per person and $50,000 per accident. This pays for the policyholder’s injuries if they are hurt in a hit-and-run accident or if the at-fault driver doesn’t have any insurance.
Missouri also requires drivers to have a minimum amount of Underinsured Motorist (UIM) coverage. In Illinois UIM is optional. This type of coverage kicks in if the total dollar amount of a victim’s injuries exceeds what’s covered by the at-fault driver’s insurance policy. For instance, if a victim has $100,000 in medical bills but the at-fault driver’s policy limit is $25,000, the victim’s own insurance will pay the remaining $75,000. However, UIM only covers the amount outlined in the policy. Thus, a victim whose UIM policy limit is $25,000 will only receive that amount.
What if an At-Fault Driver Doesn’t Have Enough Insurance to Cover My Injuries?
In a traumatic accident, medical bills are likely to exceed bodily injury limits of $25,000 for one victim, or $50,000 for multiple victims. If you’ve been in an accident that you did not cause, the at-fault driver is liable for your medical bills and lost wages. There are several options you can explore to receive compensation.
Do You Have Uninsured/Underinsured Motorist Coverage?
In our experience, 40% of car accidents are caused by people who don’t have adequate insurance. If the at-fault driver’s bodily injury limits are less than the cost of your expenses, your UIM coverage may cover the rest. The same goes for a hit-and-run. Check with your insurance company to see if your UM coverage will be enough.
Was Anyone Else Partially Responsible for the Accident?
In some cases, another party shares negligence in an accident. For example, if a driver was distracted and did not attempt to stop early enough to avoid hitting your car, and their faulty brakes caused them to slam into your car even harder. Both the at-fault driver and the auto manufacturer could owe compensation. Or, if the at-fault driver was driving a company vehicle at the time of the crash. The victim may be able to receive damages from the driver’s place of employment.
Does the At-Fault Driver Have an Umbrella Policy?
Umbrella insurance policies are not required by states, but some drivers have them as a backup to pay for damages that exceed standard bodily injury limits. Most people who have umbrella policies have assets they need to protect. For instance, if a driver caused you to incur $200,000 in medical bills and their standard liability policy only covers $100,000, you could sue them for the remainder if they have that amount in assets. But if they have an umbrella policy, it could pay for the remainder of your hospital bills and they won’t be out any money of their own.
Can the Defendant Pay for the Remainder of Costs with His Own Assets?
Without an umbrella policy, or when the defendant’s insurance policy limit isn’t enough to cover the victim’s costs, the victim may be able to receive compensation directly from the defendant, in addition to money from the defendant’s insurance company. Note that this is only effective when the defendant has substantial money or assets with which to pay the damages.
Did the Insurance Company Act in Bad Faith?
Sometimes insurance companies find reasons to delay or deny legitimate claims. They may also offer insultingly low amounts even if a victim agrees to settle within bodily injury limits. When this happens, a personal injury attorney can prove that the insurance company acted in bad faith. The victim can take the company to court, and a jury can hold them liable for the full amount of damages, above and beyond the policy limit.
A Personal Injury Attorney Will Calculate What Your Damages Are Worth Beyond Bodily Injury Limits
It’s often difficult for car accident victims to comprehend the true cost of their injuries. A personal injury attorney who handles car accidents every day won’t only look at the bills you have received. They will also examine what you are most likely going to have to pay for in the future. In addition to hospital bills and rehabilitation expenses, there could be lost wages and even a loss of earning capacity if injuries are life-changing.
Conditions that show up well after the accident should also be compensated. Back pain issues such as sciatica, cognitive issues from a traumatic brain injury, and anxiety or depression from the accident are all possible — and not likely to fall under the amount that bodily injury limits cover.
If you’ve been injured in an accident, do not speak with the other driver’s insurance company until you call Hipskind & McAninch. We can help you navigate the complex legal process and negotiate with insurance companies to ensure you receive fair compensation for your losses.
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